Foord International Feeder Fund
CLOSED TO NEW INVESTMENT
For conservative, absolute return-oriented investors in global markets
INVESTMENT OBJECTIVE
The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation.
Year | Fund Return % | Benchmark Return % | SA Inflation % |
---|---|---|---|
2006 (from 01/Mar) | 24.9 | 28.4 | 5.0 |
2007 | 9.2 | 4.6 | 8.9 |
2008 | 12.6 | -19.0 | 9.5 |
2009 | -6.9 | -1.4 | 6.3 |
2010 | -1.7 | -1.6 | 3.5 |
2011 | 19.1 | 15.9 | 6.1 |
2012 | 16.4 | 22.3 | 5.7 |
2013 | 42.5 | 57.7 | 5.4 |
2014 | 8.7 | 16.3 | 5.3 |
2015 | 36.1 | 33.3 | 5.2 |
2016 | -10.5 | -3.9 | 6.8 |
2017 | 4.2 | 10.9 | 4.7 |
2018 | 4.1 | 6.4 | 4.5 |
2019 | 14.5 | 25.3 | 4.0 |
2020 | 12.3 | 22.3 | 3.1 |
Benchmark |
To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle. |
Time horizon |
Longer than three years. |
Inception date |
1 March 2006 |
Minimum investment |
R50 000 lump sum or R1 000 per month |
Significant restrictions |
The portfolio may only invest in cash and one other collective investment scheme. |
Income distributions |
The Foord International Fund, in which the fund invests, does not distribute its income. |
Income characteristics |
Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income. |
Portfolio orientation |
Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg. |
Risk of loss |
Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund. |
Security description | Asset class | Market | Portfolio weight % |
---|---|---|---|
FMC Corp | Equity | US | 8.5 |
ETFS Physical Gold | Commodity | GB | 7.1 |
Nagacorp 9.375% 21/05/2021 | Bond | SG | 5.8 |
SSE PLC | Equity | GB | 5.6 |
Nestle | Equity | CH | 5.6 |
Roche Holding AG | Equity | CH | 4.4 |
CVS Health Corp | Equity | US | 4.2 |
Alphabet Inc | Equity | US | 3.7 |
Wheaton Precious Metals Corp | Equity | US | 3.6 |
Johnson and Johnson | Equity | US | 3.5 |
Monthly Commentary – December 2020
- Developed market equities (+4.2%) again reached new highs—the approval of the first COVID-19 vaccines by US, UK and EU regulators and (delayed) passage of a $900 billion US pandemic relief bill drove markets
- Improving global economic sentiment propelled emerging markets (+7.4%) higher—commodity exporters Brazil (+13.6%) and Russia (+10.1%) led returns, boosted by increases in underlying commodity prices including oil (+8.9%) and iron ore (+25.1%)
- Developed market bond yields diverged modestly—European sovereign yields declined on reaccelerating COVID-19 infections, while US yields edged higher on a modest improvement in US employment and the COVID-19 vaccine approvals
- The US dollar continued to weaken against most emerging market currencies and the majors—improving global economic prospects and an 11th hour Brexit trade deal led to gains for the euro (+2.3%) and British pound (+2.4%)
- Industrial commodities oil (+8.9%), copper (+2.7%) and iron ore (+25.1%) rose on expectations that production, distribution and uptake of COVID-19 vaccines may be enough to curtail the pandemic and accelerate global growth in 2021—precious metals gold (+6.6%) and silver (19.6%) rebounded after three months of retreat
- UK utility SSE PLC (+11.8%) and Hong-Kong property developer Wharf REIC (+11.9%) contributed the most to performance—Chinese insurer PICC Property & Casualty (-8.3%), detracted
- The managers continue to favour equities over other asset classes—mindful of elevated equity valuations, however, the managers also hold cash, precious metals and a modest derivative position to hedge against a potential market retracement
- The rand (+5.0% vs the US dollar) gained on broad-based dollar weakness and positive emerging markets sentiment on COVID-19 vaccine news and expectations for accelerating global economic growth in 2021—despite recent dollar weakness, the rand (-5.0%) is weaker over 2020 and remains vulnerable over the longer term
The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.
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